Philips to acquire Capsule Technologies for $635M in cash, sees accretion

Philips announced that it has signed an agreement to acquire Capsule Technologies, a provider of medical device integration and data technologies for hospitals and healthcare organizations. Capsule's medical device information platform connects almost all existing medical devices and EMRs in hospitals through a vendor-neutral system. Founded in 1997, Capsule is headquartered in Andover, Massachusetts in the U.S., and serves over 2,800 hospitals and healthcare organizations in 40 countries across the world. Capsule's innovations are developed by R&D teams in the U.S. and France. In 2020, the company achieved sales of over $100M with double-digit sales growth. The majority of sales is related to recurring software-as-a-service and licensing revenues. The acquisition will be accretive to Philips sales growth and adjusted EBITA margin in 2021. Philips will acquire Capsule for a cash consideration of $635M. The transaction is subject to certain closing conditions, including regulatory clearances in relevant jurisdictions outside of the U.S. Through an early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, the U.S. Federal Trade Commission and Department of Justice have already confirmed that they allow the transaction to be completed. The transaction is expected to be completed in Q1. Capsule and its approximately 300 employees will become part of Philips' connected care segment.